Thousands of demonstrators rally outside the Indonesian parliament on Friday to stop government plans to raise raising fuel prices.<br/> <br />Police fired tear gas grenades and used water cannons against the protesters.<br/> <br />Earlier in the day protesters blocked access to the toll road connecting the capital Jakarta and its main airport.<br/> <br />Leading Indonesian political parties dealt a separate blow to the government by rejecting the planned price increase. The government needs to reduce a swelling budget deficit.<br/> <br />Indonesia has the lowest fuel prices in Asia, and is the largest importer of gasoline and diesel.<br/> <br />Subsidies keep pump prices at half the market rate, spurring demand and helping boost car sales to record highs.<br/> <br />The central bank has warned that a fuel price hike will push inflation above its target to over 7 percent. It is also likely to dampen consumer spending, the main driver of the Indonesian economy.<br/> <br />But economists say weaning consumers off subsidies is critical to the country's long-term financial health.<br/> <br />Sarah Wali, Reuters.
